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#DBS2016 Digital Labor Disruption

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Page 1: #DBS2016 Digital Labor Disruption

© 2016 Information Services Group, Inc. All Rights Reserved.

Page 2: #DBS2016 Digital Labor Disruption

© 2016 Information Services Group, Inc. All Rights Reserved

The Enterprise Digital FabricConnected Customers

Connected Partners

ConnectedEmployees

Connected Suppliers

DigitalFabric

Page 3: #DBS2016 Digital Labor Disruption

© 2016 Information Services Group, Inc. All Rights Reserved.

Top 5 Reasons IT as we know it has changed forever

50% to 70% of enterprise workloads (applications) will be in the Public Cloud over next 3 to 5 years

Number 1:

Page 4: #DBS2016 Digital Labor Disruption

© 2016 Information Services Group, Inc. All Rights Reserved.

The Agile Enterprise is the dominant operating model – focus shifting from Run the Business

Change the Business – to radical transformation

Number 2:

Top 5 Reasons IT as we know it has changed forever

Page 5: #DBS2016 Digital Labor Disruption

© 2016 Information Services Group, Inc. All Rights Reserved.

The Digital Fabric changes the role of IT -- IT becomes the Revenue Generation Engine

Number 3:

Top 5 Reasons IT as we know it has changed forever

Page 6: #DBS2016 Digital Labor Disruption

© 2016 Information Services Group, Inc. All Rights Reserved.

The Internet of Things (IoT) and Platforms are must have capabilities

Number 4:

Top 5 Reasons IT as we know it has changed forever

Page 7: #DBS2016 Digital Labor Disruption

© 2016 Information Services Group, Inc. All Rights Reserved.

Top 5 Reasons IT as we know it has changed forever

20% to 40% of labor will be removed through extensive Automation of IT services

Number 5:

Page 8: #DBS2016 Digital Labor Disruption

© 2016 Information Services Group, Inc. All Rights Reserved.

Market Size in PerspectiveAs-a-Service vs. Traditional Outsourcing Market Size billions

Combined MarketIaaS

$24

SaaS$51

Outsourc-ing$114

40%$189

The “as a Service” model disrupts everything

Page 9: #DBS2016 Digital Labor Disruption

© 2016 Information Services Group, Inc. All Rights Reserved.

With Digital Adoption Accelerating

SaaS

IaaS

Legacy $26.1

$23.7

$22.3

$3.1 $3.6 $4.1

$3.5 $4.9 $6.9

2014

2015

2016E

95%

‘14-’16E

33%

-15%

% Change

ACV $B

113%

Americas

34%

5%

51%

APAC

33%

-35%

90%

EMEA

31%

-25%

Page 10: #DBS2016 Digital Labor Disruption

© 2016 Information Services Group, Inc. All Rights Reserved.

• Historical 3% - 5% annual improvement is now nearly30%

• Robotic Process Automation (RPA), Data mining and machine learning driving dramatic increases

ISG Automation Index: Double Digit Productivity Improvement

Page 11: #DBS2016 Digital Labor Disruption

© 2016 Information Services Group, Inc. All Rights Reserved.

• Significant double-digitcost savings from all towers

ranging from 26% to 66%

• Up to 28% of savings directly associated with RPA.

• Tremendous cost pressure on creating an incumbency dilemma

ISG Automation Index: Double Digit Cost Savings!

Page 12: #DBS2016 Digital Labor Disruption

© 2016 Information Services Group, Inc. All Rights Reserved.

IT is completely changed by Digital Transformation

ProcessesAutomation

Cloud

CustomerAnalytics

Collaborative Product

Innovation

BusinessInsights

CustomerExperience

Product Analytics

IoT

Platforms

Access Channels

Social MediaCollaboration

Enterprise

Customers

Page 13: #DBS2016 Digital Labor Disruption

© 2016 Information Services Group, Inc. All Rights Reserved.